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Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.
In contrast to all that, many investors prefer to focus on companies like Euronet Worldwide (NASDAQ:EEFT), which has not only revenues, but also profits. While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.
How Fast Is Euronet Worldwide Growing Its Earnings Per Share?
In the last three years Euronet Worldwide's earnings per share took off; so much so that it's a bit disingenuous to use these figures to try and deduce long term estimates. As a result, we'll zoom in on growth over the last year, instead. It's good to see that Euronet Worldwide's EPS has grown from US$5.77 to US$7.00 over twelve months. That's a 21% gain; respectable growth in the broader scheme of things.
It's often helpful to take a look at earnings before interest and tax (EBIT) margins, as well as revenue growth, to get another take on the quality of the company's growth. EBIT margins for Euronet Worldwide remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 8.2% to US$4.0b. That's a real positive.
The chart below shows how the company's bottom and top lines have progressed over time. For finer detail, click on the image.
See our latest analysis for Euronet Worldwide
Fortunately, we've got access to analyst forecasts of Euronet Worldwide's future profits. You can do your own forecasts without looking, or you can take a peek at what the professionals are predicting.
Are Euronet Worldwide Insiders Aligned With All Shareholders?
It's pleasing to see company leaders with putting their money on the line, so to speak, because it increases alignment of incentives between the people running the business, and its true owners. Shareholders will be pleased by the fact that insiders own Euronet Worldwide shares worth a considerable sum. We note that their impressive stake in the company is worth US$296m. Holders should find this level of insider commitment quite encouraging, since it would ensure that the leaders of the company would also experience their success, or failure, with the stock.